The Biden administration said that Silicon Valley Bank depositors will have the ability to access their cash starting on Monday in a move meant to safeguard the US economy by boosting public confidence in the nation’s banking system.
Secretary Of the treasury Janet Yellen on Sunday approved measures that will allow the Federal Deposit Insurance Corporation (FDIC) to finish its resolution of something like the Silicon Valley Bank, Santa Clara, California, in a way that fully protects all depositors, according to an official statement.
She did this after receiving recommendations from the boards of the FDIC and the Federal Reserve and consulting with the president.
As of Monday, March 13, the depositors will still have recourse to all of their funds. Taxpayers won’t incur any damages as a result of Silicon Valley Bank’s (SVB) resolution, according to a joint statement from the Federal Reserve, FDIC, and Department of the Treasury.
The same systemic risk exception is being announced for Signature Banks, New York, New York, which again was shut down by its state chartering body today. This institution will make whole all of its depositors, it stated.
The 16th largest bank in the US, Silicon Valley Bank, situated in California, was shut down by the California Department of Consumer Protection and Innovation on Friday. The FDIC was then named as the firm’s receiver.